ESKOM’S FINANCIAL CRISIS AND THE VIABILITY OF COAL-FIRED POWER IN SOUTH AFRICA IMPLICATIONS FOR KUSILE AND THE OLDER COAL-FIRED POWER STATIONS Grové Steyn, Jesse Burton, Marco Steenkamp Contact:
[email protected] 15 November 2017 ACKNOWLEDGEMENTS This study benefitted from the support of numerous parties. It was funded by a grant from the European Climate Foundation. We acknowledge the support from the Institute for Energy Economics and Financial Analysis (IEEFA) and, in particular our collaboration with David Schlissel. We also acknowledge the role of a wide range of stakeholders and industry participants who granted us interviews and without whose support we would not have been able to undertake the project.1 We thank the Council for Scientific and Industrial Research (CSIR) Energy Centre for undertaking the system level analysis for this project. All errors remain ours. This study should be cited as: Steyn, G, Burton, J, Steenkamp, M (2017) "Eskom’s financial crisis and the viability of coal-fired power in South Africa: Implications for Kusile and the older coal- fired power stations" Meridian Economics, Cape Town: South Africa. 1 Given the sensitive nature of the issues under consideration, and the difficulties currently experienced at Eskom, it was necessary to agree upfront that the names of interviewees will not be disclosed. © Meridian Economics 2017 | ii EXECUTIVE SUMMARY 1. Should Eskom cancel part of its power station construction programme to reduce costs? The South African power system has reached a 2. Should